According to new report published by Grand View Research, the global galacto-oligosaccharide Market is expected to reach $1.69 billion by 2025. Deep product penetration in infant formulations is expected to augment market growth during the forecast period.

According to the findings of a research report by Grand View Research, Inc., the galacto-oligosaccharide (GOS) market is anticipated to reach USD 1.69 billion by 2025. Galacto-oligosaccharide is used as a low-calorie sweetener in various foods and beverages such as cookies, chewing gums, yogurts, candies, cereals, ice creams, clabbered milk, soft drinks, and powdered milk. Product innovations and developments regarding GOS addition in ready-to-drink (RTD) coffees, nectars, flavored milk, meal replacements, drinking yogurts, liquid cultured milk, and sugar confectionary are projected to augment the demand for GOS.

Deep product penetration in infant formulations is expected to augment market growth during the forecast period (from 2016 to 2025). Moreover, changing consumer lifestyles along with rising number of working women in many emerging regions is also expected to positively affect the global market over the next nine years. Most GOS manufacturing companies as well as various organizations are focusing on creating GOS in a cost-effective way and with particular application and concentration. For example, The North Carolina State University (NCSU) has introduced an innovative way of GOS production with the help of recombinant galactosyl transferase. Furthermore, extensive research and development activities by these manufacturers are said to provide new growth opportunities for the global market.

The global galacto-oligosaccharide market is categorized as per end use or application and region. On the basis of application, the market is segregated into dietary supplements, food and beverages, and others. Food and beverages was the dominant application segment in 2015 and accounted for 90% of the global market. On the basis of geography, the market is divided into North America, Europe, Asia Pacific (APAC), Middle East and Africa, and Latin America.

Europe, one of the top GOS consumers and producers, dominated the market in 2015, accounting for 50% of the overall market in terms of revenue. A strong presence of various companies manufacturing infant formulas such as Danone, Ordesa, and Humana is likely to spur product demand in the region over the coming years. In addition, a large pool of geriatric population is expected to contribute toward the growth of this region during the estimated period. Constant research and development activities in the field of dietary supplements are also likely to boost regional expansion in coming years. Furthermore, entry of various food and pharma companies in the field of product development for health and nutrition is said to have a positive impact on the regional market.

APAC occupied 20% of the overall revenue in 2015 and is expected to further showcase maximum expansion over the forecast years. This can be attributed to factors such as rapid urbanization, increased consumer disposable income and functional food demands, and growing target population base. High rates of malnutrition cases in infants are also likely to escalate GOS demand in the region, thereby fueling market growth. In addition, presence of key companies such as Terio Co and Wuxi Cima Science Co. Ltd.; Taiwan Fructose Co. Ltd.; Yakult Pharmaceutical Industry Co. Ltd.; QindaoFtz United International Inc.; and Nissin Sugar Manufacturing Co. Ltd. is predicted to help spur the regional development in the near future.

Increasing demand for low-fat yogurt, tea, coffee, and milk products is expected to propel the GOS demand in the North America region over the next few years. Moreover, presence of major infant formula manufacturing companies, such as Mead Johnson, is projected to augment the region’s growth from 2016 to 2025.

Key companies in the market are Nissin Foods; Royal FrieslandCampina; Ingredion Inc.; and Yakult Pharmaceutical Industry Co. Ltd. Mergers, collaborations, and product innovation are key strategies undertaken by leading players. For instance, Dairy Crest recently announced a research agreement with Danisco Animal Nutrition, DuPont. The company said DuPont will be supporting GOS product development and trials for animals. The company also mentioned that the trial results will highly influence further discussions on an arrangement for the sale and distribution of GOS in animal feed by DuPont.

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.